"Our strategy for expanding sales is already reaping rewards now. Naturally, this makes us optimistic for the future", says Peter H. Leibold, Managing Director of German Pellets GmbH. The expansion of US production capacity also contributed to the group result in the first half of 2015.
The company’s equity capital was able to be further boosted by means of the implementation of the growth strategy. Among other things, this is attributable to a further improvement in earnings; operational cash-flow rose from Euro 3.1 million in the first half of 2014 to reach Euro 8.9 million as of 30 June 2015.
As of the end of the reporting period, the equity ratio rose to 15.6%. With the launch of operations at the second US site operated by German Pellets, namely in Urania, Louisiana, the company benefited even more strongly from more favourable production costs in the US. The natural securing of the US production by concluding the sales contracts in US dollars proved to be the right strategy: accordingly, as before, the strong US dollar has not to date exerted any negative effect on the earnings of the US companies. For the future, German Pellets is also planning to sell product on the US market through working with established-name partners.
German Pellets is one of the world's leading producers and distributors of wood pellets.
